FIXING A BROKEN REVENUE MODEL
This club were operating with a vulnerable revenue model. One that exposed them any time there were changes in consumer behaviour. Cornerstone Golf set out to shore up its footings, leading to a significant boost in turnover.
LOCATION
South East, England
DIRECTION
Boost Turnover
Situation
A 36-hole proprietary daily fee course in South England with a small membership and no waiting list came to the realisation they were unlikely to succeed with their current revenue model. With a growing need to optimise profits and open up new markets, it was time for change.
Business Outcomes
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Turnover increased from £1,242k to £1,423k in four years
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Growth in EBITDA of 45% delivered at 36% of Total Sales
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Growth in Golf Day business grew 33%
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150+ new juniors were introduced to club through School Sports Partnership.
Response
Cornerstone embarked on an analysis of the club’s catchment area to understand where the opportunities for the club lay. This revealed the need to reposition and relaunch if they were to be relevant and appealing to the new markets we had identified.
In practical terms, this meant:
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Changes to the operational layout
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Changes to sales personnel
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Introducing new membership categories
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Introducing a Starter Centre and Academy
There was also a need to realise the untapped potential of existing club assets.
Its conference room was under-utilised, yet the location of the club made it ideal for local businesses looking for training or meeting spaces. Its open plan bar and dining area offered an appealing space for golf days and the local party market.
Marketing campaigns were developed and launched to promote the assets to the relevant audiences, leading to a considerable growth in business.
Outdoors, the club possessed a grass tee practice range which was too short to be practical. Although planning was turned down for a full driving range, the existing facility was lengthened and the club developed a starter centre and golf academy.